The large amounts of capital
involved and the necessity for businesslike procedures in managing
a farm make it imperative that there be a clear understanding
between client and farm manager regarding each persons responsibilities.
This understanding covers the responsibility the manager has for
various components of management.
The manager has full responsibility and authority in many contract
arrangements. The manager is responsible for inspections to gather
information, and periodic reports to provide information to the
client. The client must be kept fully informed through these reports
and letters. The owner may stipulate the frequency of reports
from the manager. Usually the manager collects the income, pays
the bills, and delivers the surplus funds to the owner. Under
no circumstances should a client's funds be intermingled with
the manager's personal or other business accounts. Co-mingling
this money is a most flagrant breach of business ethics and is
not tolerated by the profession. Managers may use a separate checking
account for each client.
Marketing crops is often considered a part
of the expected services in a management contract. Because of
the required expertise and necessary time devoted to it, marketing
has become an important aspect of professional management.
attempt is made here to determine the fee structure used by the
Farm and Ranch Co. management team. Fees may vary and may be dependent
upon: type of farm (crop share, livestock, or both), the size
or volume of business, amount of supervision required, and if
the farm is direct or custom operated. Fees may be based upon
a percentage of the owner's share of income, flat annual charge,
or time spent in the management of the farm. After analyzing your
farm operation, we will be able to tell you how we can improve
the return that you are receiving and the professional fee for
At your convenience and with no financial obligation on your part,
we will provide for you a confidential market analysis of your
present farming operation. This analysis will provide you with
information that will help you make management decisions that
are in your best interest; decisions that will put more income
in your pocket. Rental income has increased dramatically on farmland
in the past few years. We are constantly seeing change. You are
entitled to the benefits of change and increased farm earnings.
We will get you these benefits.